The Source for Cyber Insurance News, Insights and Data
Asset manager Stone Ridge entered into $100m deal with Hannover Reinsurance relating to cyber insurance exposure. “In the statement, Ross Stevens, CEO of Stone Ridge, said the company expects higher than average investment returns from cyber insurance investments and low correlation with other investment risks. ‘We intend to meaningfully grow our cyber exposure throughout 2023 … Read more
While not everybody is yet entirely convinced the feds should provide a backstop to cyber insurers for catastrophic system-wide attacks, Politico reports the discussion is moving forward. “But policymakers and executive branch officials have plenty left to iron out, said (RAND senior policy researcher Sasha) Romanosky (@SashaRomanosky), and they might opt for something far less … Read more
“Being a privately placed Section 4(2) cat bond, this Cairney deal as it is called, is akin to a transformed collateralised reinsurance deal that has been syndicated across a group of investors and securitized using a segregated cell of a special purpose insurance vehicle.” See more about the $45 million bond here. Source: Beazley’s cyber … Read more
We recently wrote about the market anticipation of a trade-able 144a Catastrophe (“Cat”) Bond. Now Beazley, a London-based specialist insurer, has launched something related, the first-ever cyber catastrophe bond. The $45 million bond gives Beazley indemnity for all risks in excess of a $300 million catastrophic event and is backed by a group of insurance-linked … Read more
This report, written by the team @TheGrahamCo, casts doubt on using a “new captive” for cyber risk, as captives are commonly used for “high-frequency, low-severity” claims, while cyber attacks are often low-frequency and high-severity. Captives make more sense if they’re “mature” and have enough surplus capital to cover substantial losses. “If your organization has a … Read more